Australian child care real estate asset’s 'investable universe' now at a whopping $28b

Total asset sales hit $170m in H1 2021, surpassing 2020 figures. 

According to a recent report by JLL, Australian child care real estate continues to be a highly sought-after property investment class over the past five years. Data from the Department of Education says there are around 1.2 million children in child care services across Australia. Demand for child care has seen significant growth due to rising participation rates of women in the workforce and an increasing number of children whose parents are both working.

“The Australian child care market has been a sought after real estate investment class over the past five years, with favourable demographics and increasing utilisation rates helping to stimulate investor appetite. Over AUD 1.8 billion of child care assets have transacted since 2015, with 2021 year-to-date (YTD) sales volumes rebounding to already surpass total sales volumes for 2020. Over AUD 170 million of assets have exchanged over the six months to 30 June 2021,” says JLL.

The report reveals that the investable universe of Australian child care real estate is estimated to be approximately AUD 28 billion. “Small individual asset sizes have enabled a broad range of investors to participate in the market, enhancing liquidity. A-REITs account for approximately 7% of the investable universe, with the remainder owned by a variety of private investors, syndicates, funds and owner-operators.”

Read the full report here.